Microsoft has begun to make its case to the Federal Trade Commission in support of its acquisition of Activision Blizzard. The company’s strategy, it lost the “console war” with Sony and Nintendo.
Gamespot’s official Twitter feed posted the following: Microsoft Declares Xbox Has “Lost The Console Wars.“
— GameSpot (@GameSpot) June 24, 2023
Even though the top three dominate the market, Microsoft claims to be a distant third compared to its competitors. The term “console war” alludes to the ongoing conflict between Microsoft, Nintendo, and Sony.
Microsoft presented its claim in a court document about how it has been losing the console war to its competitors since 2001. It argued in its case that the PlayStation 2 and GameCube outsold the first Xbox by a significant margin in sales. Furthermore, the corporation claims that its document has not changed the scenario.
“Xbox has lost the console wars, and its rivals are positioned to continue to dominate, including by leveraging exclusive content.”
The Xbox creator added-
“Xbox’s console has consistently ranked third (of three) behind PlayStation and Nintendo in sales. In 2021, Xbox had a 16 per cent share, while Nintendo and PlayStation had shares of [redacted] and [redacted], respectively.”
“Likewise, for console revenues and share of consoles currently in use by gamers (‘installed base’), Xbox trails with 21 per cent, while PlayStation and Nintendo have shares of [redacted] and [redacted], respectively.”
The hardware and software sales tracker VGChartz, the company’s most current systems, including the Xbox Series X and Xbox Series S, only sold 21 million copies as of April 2023. In comparison, the PlayStation 5 and Nintendo Switch each sold roughly 36 million copies.
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It should also be emphasized that the handheld console has a modest sales advantage. Microsoft announced that it has largely abandoned its efforts to participate in the current console battle and is now focusing on giving its player base software that has either not yet been published or has failed.
Most of what Xbox has done recently has reflected this concentration, such as its heavy focus on establishing its Game Pass subscription program. Microsoft looks less concerned with market dominance and more committed to being the first Netflix in its industry.
Microsoft further wrote in the document-
“Having lost the console wars, Xbox is betting on a different strategy than Sony [and Nintendo].”
“Xbox generates profits through game sales, not console sales. That is because Xbox sells its consoles at a loss, effectively subsidising gamers’ purchases of the hardware in hopes of making up the [lost] revenue through sales of games and accessories.”
These discoveries correlate with Microsoft’s announcement that the next console generation will be released in 2028. If and when the company purchases Activision Blizzard, it is likely that Call of Duty will remain available on competing platforms.
Sony, on the other hand, is not overjoyed with the arrangement. In the same hearing, Sony PlayStation CEO Jim Ryan stated that the business would not discuss information about a prospective PlayStation 6 with the Call of Duty developers if the transaction goes through. This might have many consequences for PlayStation Call of Duty players.
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